Obama to Push Net Tax Hike on Businesses in SOTU

According to Americans for Tax Reform, President Obama will push a tax hike on American businesses in his State of the Union Address on Tuesday. ATR reports that “according to reports, the ‘offer’ President Obama is making is to raise net taxes on employers, and use some of the tax increase revenue windfall to pay for Democrat-aligned union construction projects.”

Obama will reportedly propose a cut in the corporate tax rate to 28 percent, but that number would only apply to major corporations. Smaller employers would pay a 44 percent tax rate.

Most Americans continue to pay individual tax rates – meaning that the biggest corporations would face lower taxes than the smaller businesses Obama claims to stand for. Obama’s corporate tax rate reduction would place the United States higher than average in the industrialized world. Meanwhile, the United States would continue to double-tax profits earned overseas.